Jay Jamison Sold Property to Joan Jacobs

Jay Jamison sold property to Joan Jacobs. Joan paid $100,000 in cash and $20,000 in other property (fair market value) . fte property sold by Jay was subject to an $80,000 mortgage, which Joan assumed. Jay paid a $7,200 sales commission and $5,000 in property taxes. Jay had purchased the property three years before for $120,000- $20,000 in cash and a $100,000 mortgage. Jay had added $20,000 in improvements during the period of time in which he held the property. What is Jay's realized gain or loss on this transaction?

A) ($32,200) loss
B) ($27,200) loss
C) $47,800 gain
D) $52,800 gain
E) $112,000 gain